Polar Equipment, Inc. v. Exxon Mobil Corp.

MEMORANDUM *

The district court held that the parties had agreed that interest on the amount of their settlement should be compounded and that the general rule of simple interest from Aaska Statutes section 09.30.070(a) did not apply. Exxon appeals, arguing that, under Aaska state law, it should have been allowed to present extrinsic evidence of the parties’ intent regarding prejudgment interest. Exxon also appeals the district court’s order denying leave to amend its answer to add a counterclaim for reformation.

We have jurisdiction under 28 U.S.C. § 1291 . We review de novo a district court’s interpretation and application of state law. Salve Regina Coll. v. Russell, 499 U.S. 225, 231 , 111 S.Ct. 1217 , 113 L.Ed.2d 190 (1991). In Aaska, the parol evidence rule is a substantive rule of state law. Alaska Diversified Contractors, Inc. v. Lower Kuskokwim Sch. Dist., 778 P.2d 581, 583 (Alaska 1989).

When interpreting a contract, a court’s duty is to “ascertain and give effect to the reasonable intentions of the contracting parties.” Estate of Polushkin ex rel. Polushkin v. Maw, 170 P.3d 162, 167 (Alaska 2007) (internal quotation marks omitted). The parties’ reasonable intentions…